Persons engaged in
the business of operating as a private or common carrier by air, rail or
water in interstate or foreign commerce.

SOURCE

DOCUMENT

DETER.
NO

DATE
OF ISSUE

DESCRIPTION

WAC:

458-20-175

03/06/1986

Persons
engaged in the business of operating as a private or common carrier by air,
rail or water in interstate or foreign commerce.

RCW:

82.04.250

1993

Tax on Retailers

82.08.020

1992

Retail Sales Tax Imposed

82.08.0261

1980

Exemptions -- Sales of
personal property for use connected with private or common carriers in
interstate or foreign commerce.

82.08.0262

1980

Exemptions -- Sales of
airplanes, locomotives, railroad cars, or watercraft for use in interstate or
foreign commerce or outside the territorial waters of the state or airplanes
sold to United States government -- Components thereof and of motor vehicles
or trailers used for constructing, repairing, cleaning, etc. -- Labor and
services for constructing, repairing, cleaning, etc.

PURCHASE AND INSTALLATION OF FIXTURES AND EQUIPMENT ON A VESSEL OWNED BY ANOTHER Revised 2/2/09 See ETA 3027.2009

INDUSTRY GUIDES:

SPECIAL
NOTICES:

Subject
Title Reference:

Spirits Tax

08/30/2012

Claims of Constitutional Impairment of Contract made under Initiative 1183

Boats

03/01/2012

Questions and Answers on Spirits Tax for Retailers

8/13/09

Taxability of the Charter Boat Industry

11/08/1999

"New Buyers" Retail
Sales Tax Exemption Certificate

07/23/2004

Taxability of the Charter Boat
Industry

DIRECTIVE:

None

RPM:

None

WTD:

1 WTD 415

85-308A & 86-20A

USE TAX--WATERCRAFT USED IN
INTERSTATE COMMERCE.Vessels used to
haul or tow other vessels laden with goods moving in interstate commerce are
included within the scope of statutory use tax exemption.

3 WTD 1

87-105

USE
TAX -- EXEMPTION -- WATERCRAFT COMPONENT PART -- INTERSTATE COMMERCE.There is a sales/use tax exemption on the
use of personalty which becomes a component part of watercraft used in
conducting interstate or foreign commerce by transporting therein or
therewith property and persons for hire.The exemption was not available to the taxpayer because its yacht was
not used in interstate commerce to transport for hire.

5 WTD 107

88-37

USE
TAX -- EXEMPT USAGE -- WATERCRAFT --INTERSTATE COMMERCE.To qualify for the statutory exemption for
a watercraft used in interstate commerce, a boat must be used primarily to
carry persons or property for hire.Use of a boat for employee accommodations does not qualify.Weyerhaeuser v. Dept. of Revenue, 106 Wn.2d
557 (1986).1 WTD 415 (1986).

11 WTD 9

83-283

USE
TAX -- TANGIBLE PERSONAL PROPERTY -- INTERSTATE COMMERCE -- PROMOTIONAL
BROCHURES.Sales brochures constitute
tangible personal property. If used in connection with operating as a carrier
in interstate and foreign commerce, their purchase and delivery here is tax
exempt under RCW 82.08.0261.The
proviso in the statutory exemption of RCW 82.08.0261 which makes interstate
carrier property taxable under use tax when it is put to actual use here,
means that the use tax applies if the property is used here for its ultimate
intended purpose.Mere storage here,
or acts of delivering the property to persons outside this state, is not
"actual use" as a consumer within this state.

12 WTD 45

91-313R

SALES/USE TAX -- SALES TO COMMON
CARRIERS -- NECESSITY TO COLLECT.The
provision in Rule 175 that allows vendors to take an exemption certificate
from a common carrier for retail sales does not apply to the altering or
repairing of real property.The
contractor must collect retail sales tax on such work.NOTE:THIS DETERMINATION OVERRULES A PORTION OF
DET. NO. 91-313, 12 WTD ___ (1993).

12 WTD 105

92-056

SALES
TAX -- EXEMPTION CERTIFICATES.Vendor
required to obtain exemption certificates for chemicals and cleaning supplies
sold to common carriers.Chemicals
consumed in cleaning do not qualify as component parts.

13 WTD 39

91-323ER

RETAIL
SALES TAX EXEMPTION -- USE TAX EXEMPTION -- [VESSEL] -- THEREWITH --
STATUTORY CONSTRUCTION -- INTERSTATE AND FOREIGN COMMERCE -- WATERCRAFT.Taxpayer's [vessels] which do not
themselves carry or haul cargo moving in interstate or foreign commerce must
physically connect to other vessels carrying and moving cargo in interstate
or foreign commerce and actually tow those vessels as part of a continuing
movement of interstate and foreign commerce in order to satisfy the statutory
requirement of conducting "interstate or foreign commerce by
transporting therein or therewith property for hire."Det. No. 85-308A and 86-20A, 1 WTD 415
(1986).

13 WTD 39

91-323ER

BOUNDARY
CROSSING -- TERRITORIAL WATERS -- WATERCRAFT EXEMPTIONS.The legislature did not include a boundary
crossing requirement for watercraft in the language of the statutory
exemptions, therefore taxpayer's [vessels] which tow or haul other exempt
vessels exclusively within Washington territorial waters are not required to
cross international or interstate boundaries as a condition for determining
whether taxpayer's [vessels] are entitled to the sales and use tax
exemptions.The question is not
whether taxpayer is conducting interstate or foreign commerce but whether it
is doing so by transporting property therewith.Citing, United Parcel Service v. Department
of Revenue, 102 Wn.2d 355 (1984).

13 WTD 39

91-323ER

[VESSELS].[ Vessels] must be used as an inseparable
part of a continuing interstate or foreign movement of property for hire to
be exempt from retail sales tax and use tax.

13 WTD 39

91-323ER

CARGO
-- STATUTORY CONSTRUCTION.Use of the
term "cargo" instead of "property" does not violate rules
of statutory construction.Cargo
refers to the property being transported by the exempt vessel/watercraft
being towed.Statutory exemptions must
be narrowly construed.United Parcel
Service v. Department of Revenue, 102 Wn.2d 355, 360 (1984).

13 WTD 39

91-323ER

[VESSEL]
-- STAND BY -- ESCORT SERVICES.[Vessels] which do not physically connect to other exempt cargo-laden
watercraft for the purpose of towing or hauling the other exempt watercraft
is not "transporting property therein or therewith."

13 WTD 39

91-323ER

PRIMARY
USE -- TRANSPORTING FOR HIRE.Primary
use must constitute 51% or more usage of each [vessel] in conducting
interstate or foreign commerce by transporting property or persons therein or
therewith for hire.

RETAIL
SALES TAX -- USE TAX -- AIRCRAFT PURCHASED FOR LEASE -- FLIGHT
INSTRUCTION:In general, aircraft
purchased by a taxpayer for providing flight instruction services are subject
to use tax. However, a different result may occur where a taxpayer separately
charges student pilots retail sales tax for lease of aircraft pursuant to
lease agreements under which the student pilots assume possession and control
of the aircraft. Under such circumstances, the aircraft was purchased for
resale, and it is not subject to use tax so long as the aircraft is not put
to intervening, non-exempt use.

15 WTD 65

94-226

USE
TAX -- EXEMPTIONS -- PRIMARY USE -- AIRCRAFT -- INTERSTATE COMMERCE.Aircraft primarily used by a private
carrier to conduct interstate commerce by transporting property therein for
hire are exempt from use tax.

17 WTD 40

96-031

HAZARDOUS SUBSTANCE TAX;PETROLEUM PRODUCTS TAX;B&O TAX -- EXEMPTION/CREDIT --
FUEL-IN-TANKS -- MARINE LUBRICANTS.Marine lubricants are considered to be a fuel for purposes of a tax
credit/exemption, only where they are concurrently consumed in the bunker
fuel's combustion process.

19 WTD 986

00-057

RETAIL
SALES TAX AND USE TAX -- WATERCRAFT EXEMPTIONS -- DELIVERING BUNKER FUEL --
TRANSPORTING THEREIN OR THEREWITH -- INTERSTATE OR FOREIGN COMMERCE.The fact that ocean-going vessels to which
Taxpayers watercraft deliver bunker fuel cannot consume the fuel until they
are in international waters, does not bring Taxpayers instate transportation
of the bunker fuel within the exemptions in RCW 82.08.0262 and RCW
82.12.0254.The bunker fuel is no
longer an item of commerce once Taxpayer unloads it onto the other vessels in
Washington waters, thus Taxpayers transportation is not a leg of a
continuing movement in interstate or foreign commerce.

19 WTD 986

00-057

RETAIL SALES TAX AND USE TAX --
WATERCRAFT EXEMPTIONS -- DELIVERING BUNKER FUEL -- TRANSPORTING THEREIN OR
THEREWITH -- INTERSTATE OR FOREIGN COMMERCE.Delivering marine bunker fuel, for consumption, to other vessels
carrying and moving cargo in interstate or foreign commerce, does not
constitute transporting the cargo that is aboard the other vessels.It is not a use that qualifies for the
exemptions in RCW 82.08.0262 and RCW 82.12.0254.

19 WTD 986

00-057

PUBLIC UTILITY TAX -- DEDUCTIONS
-- EXPORTS -- COMMODITIES -- FORWARD -- FOREIGN DESTINATIONS.Revenue from transportation of bunker fuel,
for consumption, to ship side on Washington tidewater or navigable tributaries,
is not deductible under RCW 82.16.050(8).There is no forwarding of commodities to interstate or foreign
destinations required by the statute.

25 WTD 148

05-0196

USE TAX EXEMPTION -- WATERCRAFT
USED PRIMARILY IN INTERSTATE OR FOREIGN COMMERCE.The referenced use tax exemption for
watercraft applies only to persons conducting or engaged in business as a
private or common carrier by watercraft primarily used in interstate or
foreign commerce to carry passengers or property for hire.It does not apply to a shipper that hires a
towing company to tow log booms.